The crypto market has hit a new milestone after recording over $4 billion in venture funding. What makes this most notable is that this is the highest quarterly investment ever recorded since Q4 of 2022.
This investment, which spanned 687 deals, was led by infrastructural projects with over $4 billion recorded. According to The Block, the Web3 space recorded the highest investment, closing over 141 deals, with NFT/Gaming trailing closely behind at 132 deals.
Artificial Intelligence (AI) Steals the Show in 2024
Data by Crunchbase shows 2024 with a spike in venture funding compared to 2023. Overall funding in 2024 reached close to $314 billion, starkly contrasting with 2023’s $304 billion, a markup of around 3%.
With 2024 being the breakout year for AI, close to a third of all venture funding went into AI-related companies and projects. According to Crunchbase data, AI funding reached over $100 billion, an 80% increase from 2023’s $55.6 billion.
A huge part of the funding in 2024 went to billion-dollar rounds, with many directed to the AI sector. According to sources, about 19% or $58.3 billion of funding went to billion-dollar rounds. Compared to the 15% in 2023, this metric is quite staggering.
The largest valuation came in the fourth quarter of the year, where OpenAI was pegged at a valuation of $157 billion. AI data intelligence platform Databricks was awarded a valuation of $62 billion after the conclusion of the largest venture deal of 2024.
Expectedly, the largest funding rounds in 2024 went to the AI companies. This includes Databricks and OpenAI and companies like Anthropic, an AI-powered safety and research platform that has realized at least $4 billion in funding.
Signals of a Bullish Era?
The year 2021 recorded the highest numbers in crypto venture funding, raking in $83 billion in capital. The crypto market also witnessed an incredibly bullish rally, with the cryptocurrency industry’s total market cap rising by over 187%.
Many cryptocurrencies saw maturity, with Solana growing over 11,000% and Dogecoin rising by over 3500%. This has given way to speculation, with many cryptocurrencies optimistic and awaiting a bull market in 2024.
A user on X expressed a similar sentiment, noting that this massive funding in cryptocurrency ventures indicates investors are becoming more optimistic about blockchain infrastructure projects.
